Howzat? The clamour to legalise sports betting wagering in India
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Published

5 February 2016

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By Sameer Hashmi

Mumbai Business press reporter

It is the last over of the cricket match, with India needing 17 go to win versus .

In his two-bedroom home situated in main Mumbai, a middle-aged guy is enjoying the game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his right-hand man.

He has actually made more than 10 hire the last 30 minutes - not to go over the match but to keep revising his bet.

Five minutes previously his cash was on Australia, and now as the Indian batsman prepares to face the last over he's changed his mind.

"I believe India is winning, make the change," he tells his bookie on the phone.

And a couple of minutes later his prediction comes to life, as India wins the match in a nail-biting surface.

"I have actually made $200 today," he states with a childish glee.

For more than three decades he's been wagering on cricket matches. We can't expose his name as what he's doing is illegal in India.

Other than horse racing, sports betting wagering of any kind is not allowed India. Despite that, prohibited sports betting syndicates flourish in the country.

'Black cash'
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According to the Doha-based International Centre for sports betting Security, India's unlawful sports betting wagering market is worth some $150bn a year. And much of that sports betting money is directed towards cricket.

With no legal avenue, punters put bets using their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the highest specific run scorer.

The majority of these deals include so-called "black cash", which is cash not declared to the taxman.

The 1867 Public Gambling Act bars any type of gambling in India, however unlike in the US which has a law restricting web sports betting, there is nothing comparable here.

And overseas wagering companies are using this loophole to tempt Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have registered accounts with overseas firms.

"Legally you can get away [with this], as the law is unclear for online gambling," states Mumbai- based attorney HP Ranina.

But despite this, it is "offline gambling", done through telephone call which control the marketplace.

Require legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel appointed by India's Supreme Court proposed the concept, stating it would help secure down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up to recommend changes in the performance of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

Two franchises have actually been banned for two years after some gamers and team authorities were condemned of repairing parts of the match at the behest of bookmakers.

The panel also argues that legalised wagering will generate tax earnings for the exchequer that might amount to $2bn a year.

Even gamblers feel that legalising sports betting is a relocation in the ideal instructions.

"I don't mind paying some money out my revenues, as long as I can bet publicly," states our cricket bettor.

It would also open a big service chance for certified bookies and international online wagering business to set up operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue many, by helping make transactions associated with gambling more transparent.

"If you work alongside sports betting business, you will have an extremely reliable approach of marking out match fixing," says George Oborne, who runs a mock wagering site, India Bet.

But lots of likewise think, that the taxes levied on the bettor and the bookie will have to be reasonable to make it attractive enough for them to bet legally.

However, there are limitations.

"Definitely there will be illegal wagering due to the fact that (some) people wouldn't wish to leave an audit path by going into the white market," states Mr Oborne.

He includes that people who utilize unaccounted cash to place big bets will never ever bet legally.

Approval question

For sports betting to be legalised, parliamentary approval will be required to develop a brand-new law, and politically this will be a tough idea to offer.

"Although many individuals are associated with some sort of gambling - it's still a questionable issue for many," says our unnamed punter.

And given that India has a federal structural - each state will need to also pass a separate law to legalise sports betting gambling in their territory.

"The procedure is so long and tricky that it will take years," says Mr Ranina."That's why, we are cynical about this becoming a reality anytime soon."

Yet with the idea having been endorsed by a main panel for the very first time, at least an argument has fired up around a subject - which previously was thought about a taboo.
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